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I am guessing you need to do this for Youtube.
Make your file avi or mpeg, at HQ settings.
300 mb for 3 minutes seems a bit large, but try this...
Go to SeeMyWorld and download one of the three very good and very free converters and convert your finished file to Flash (FLV). Very easy!
Watch one of the tutorials, after you do this you will see that Flv allows much smaller file size, but the video quality is great.
Upload sites love Flv.